Avista Corporation (AVA)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	634,105	616,736	134,673	-6,541	-6,540	6,888	6,886	6,929	7,024	13,472	13,588	13,703	13,811	21,803	21,791	21,769	41,407	32,856	33,894	34,910
Inventory	US$ in thousands	159,984	145,174	115,805	101,775	107,674	123,447	105,791	76,402	84,733	87,203	82,778	63,160	67,451	69,026	67,333	56,681	66,583	67,732	67,659	61,354
Inventory turnover		3.96	4.25	1.16	-0.06	-0.06	0.06	0.07	0.09	0.08	0.15	0.16	0.22	0.20	0.32	0.32	0.38	0.62	0.49	0.50	0.57

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $634,105K ÷ $159,984K
= 3.96

The inventory turnover ratio for Avista Corp. has been relatively stable over the past eight quarters, ranging from 4.39 to 7.29. The ratio indicates the number of times a company's inventory is sold and replaced within a given period.

The trend shows an increasing pattern from Q4 2022 to Q1 2023, reaching a peak at 7.29, which suggests that the company has been managing its inventory efficiently during this period. A higher turnover indicates that inventory is being sold quickly, which can improve liquidity and reduce carrying costs.

However, the ratio decreased in Q2 and Q3 2023 compared to Q1 2023, indicating potentially slower inventory turnover during those quarters. This could be a result of various factors such as changes in customer demand, supply chain disruptions, or inefficient inventory management practices.

Overall, a careful analysis of Avista Corp.'s inventory turnover ratios can provide insights into the company's operational efficiency, inventory management practices, and potential challenges or opportunities in the business.